Resource Dependence In Non-profit Organizations: Is It Harder To Fundraise If You Diversify Your Revenue Structure?

This article explores how fundraising efficiency is affected by changes in diversification of revenues in non-profit organizations. It uses random effect regression and Arellano–Bond models to study this phenomenon in a sample of 10358 US non-profits during the 1997–2007 period. We find a negative i...

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Detalhes bibliográficos
Autores: Sacristán López de los Mozos, Ignacio, Rodríguez Duarte, Antonio Mateo, Rodríguez Ruiz, Óscar
Tipo de documento: artigo
Data de publicação:2016
País:España
Recursos:Universidad Complutense de Madrid (UCM)
Repositório:Docta Complutense
Idioma:inglês
OAI Identifier:oai:docta.ucm.es:20.500.14352/18786
Acesso em linha:https://hdl.handle.net/20.500.14352/18786
Access Level:Acceso aberto
Palavra-chave:061.235
Diversification of revenues
Fundraising efficiency
Resource dependence
Organizaciones No Gubernamentales (Trabajo Social)
Administración de empresas
5311 Organización y Dirección de Empresas
Descrição
Resumo:This article explores how fundraising efficiency is affected by changes in diversification of revenues in non-profit organizations. It uses random effect regression and Arellano–Bond models to study this phenomenon in a sample of 10358 US non-profits during the 1997–2007 period. We find a negative impact on fundraising efficiency when NPOs alter their locus of dependence and change their pattern of diversification. This effect is impacted by organizational size and industry. Previous studies have suggested that income heterogeneity is associated with organizational stability and financial strength. Using a change (versus level) model of funding diversity, our work shows that increased diversification leads to a higher operational inefficiency that could be penalized by potential donors.